Question: 11 Video Excel Online Structured Activity: Expectations Theory Interest rates on 4-year Treasury securities are currently 6.05%, while 6-year Treasury securities yield 7.35%. The data

 11 Video Excel Online Structured Activity: Expectations Theory Interest rates on4-year Treasury securities are currently 6.05%, while 6-year Treasury securities yield 7.35%.

11 Video Excel Online Structured Activity: Expectations Theory Interest rates on 4-year Treasury securities are currently 6.05%, while 6-year Treasury securities yield 7.35%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Calculate the yield using a geometric average. Do not round your intermediate calculations. Round your answer to two decimal places % Check My Work Reset Problem x Excel template . Saved Simplified Ribbon File Home Insert Fores Data Review View Help Editing Comments To me what you want to do 2b Aral 10 A B 1 Percentage Sv Format TO 87 c D E F G 1 3 K L M N 0 P R s T U V w X Y 6.05% 7.35% Formulas ANA ANIA NA A 1 Expectations Theory 34-yr. Treasury security yield 1 yr. Treasury security yield Algebraic solution: : 7 Total return and on 6-year securities 0 Total motum earned on 4-year securities Yeld on 2 y securities 4 years from now 11 Geometrie solution: 12 1. Tot returnered on 6-year securities 13 1 Total returneamed on 4-year securites Yield on 2-yt securities 4 years from now 15 11 16 17 18 19 20 21 22 23 MNIA INA WNIA 30 32 33 39 40 41 43 Sheeti + Cication Mode: Automat Workbook Gedackte M -100+

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